This is not being picked up by the major news sources and I don't really know its validity. At the same time, nothing in here would shock me at all. It is what I have believed for awhile. Turner Radio Network Blog (maybe someone can vouch for this source of info?) is reporting they obtained a copy of the official bank stress test. It is not pretty. That doesn't describe it. It is apocalyptic. They are also reporting they have been threatened by the Treasury and the SEC. I have not seen this anywhere else and I don't know why. Anyway, if this true, the people at Turner Radio Network better walk softly. They are reporting the destruction of the establishment.
1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent. (Based upon the “alternative more adverse” scenario which had a 3.3 percent contraction of the U.S. Economy in 2009, accompanied by 8.9 percent unemployment, followed by 0.5 percent growth of the U.S. Economy but a 10.3 percent jobless in 2010.)
2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans. (Without further government injections of cash)
3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.
This afternoon at around 3:00 PM eastern US time, Turner Radio Network (TRN) received a call from John Polesi at the U.S. Securities & Exchange Commission in Washington, DC.